Shadow Assistant Treasurer Senator Mathias Cormann on Thur 24.5.2012, said that, following Senate Estimates hearings today, confusion reigned over the Government’s new super tax on people earning more than $300,000, “with no clear idea on who is likely to pay the tax and who isn’t”. On 9 May 2012, Senator Cormann said Finance Minister Penny…
The Superannuation Legislation Amendment (Stronger Super) Bill 2012 and the Superannuation Supervisory Levy Imposition Amendment Bill 2012 were introduced into the House of Reps on Thur 24.5.2012.The Bills seek to give effect to the Government’s SuperStream reforms. The main Bill proposes to amend the SIS Act to establish a framework to support the implementation of…
The Superannuation Legislation Amendment (Trustee Obligations and Prudential Standards) Bill 2012 was passed by the House of Reps on Wed 23.5.2012, without amendment and now moves to the Senate. The Bill contains the 2nd tranche of legislation for the Government’s Stronger Super (MySuper and governance) reforms. [LTN 98, 23/5]
This Ruling, released on Wed 30.5.2012, explains the Commissioner’s views on when a “financial assistance payment” (which includes: (i) payments made to provide support or aid to the payee; and/or (ii) payments provided to support or aid in the implementation of government policy and initiatives) is consideration for a supply. Where it is established that…
The A New Tax System (Goods and Services Tax) Amendment Regulation 2012 (No 1) was registered on the Federal Register of Legislative Instruments on Tue 29.5.2012. It amends the GST Regulations to implement 4 of the recommendations arising out of Treasury’s review of the GST financial supply provisions. The amendments: treat all components of a…
The Assistant Treasurer on Wed 2.5.2012, released draft Regulations for public consultation specifying the GST treatment of certain Australian taxes, fees and charges. The draft regulations and explanatory material are on the Treasury website. The Regulations would provide that certain taxes, fees and charges will either be taxable or GST exempt, consistent with the principles…
In a recent interview, an ATO senior tax counsel outlined the ATO view on trusts and the changes implemented by the ATO for the 2012 income tax year. Some points of note from the interview include: Trustee resolutions – The ATO says the previous concessional practice of allowing trustees to make beneficiaries presently entitled to…
Means testing the private health insurance rebate starts on 1 July this year. The ATO says that, from 21 May 2012, it will write directly to tax agent clients who may be affected by changes to the private health insurance rebate. The letter will provide information to assist those people determine whether their entitlement to…
The ATO has advised that, from 1 July 2012, TaxPack and TaxPack supplement will be replaced by 2 new print products – Individual tax return instructions and Individual tax return instructions supplement. The ATO says the replacement products have been streamlined to focus on the information that applies to the majority of paper lodgers. As…
The ATO has released a guide for tax professionals on default assessments for overdue tax returns. The guide outlines the process for the ATO in issuing default assessments including first issuing a default assessment warning letter (DAWL) and contact with the taxpayer or their tax agents. The ATO said the taxable income of the taxpayer…